Capturing Your Real Estate Niche

Capturing Your Real Estate NicheFor any real estate agent, a clearly defined niche strengthens your market position, creates efficiencies and establishes you as an expert. Whether you specialize in a property type, client demographic, or neighborhood – adopting a niche strategy has obvious benefits. So how do you go about discovering, defining & developing your niche?

1.Study Your Past Clients

In order to adopt a niche strategy, first look at your past clients. What patterns do you see? Study client profiles, property types, neighborhoods & home prices. Are most of your clients buying heritage properties? Or maybe there’s lots of millennials shopping in urban areas, or retirees selling their family home to downsize?

2.Decide if It’s for You

After looking at your past clients and the trends that emerge, which were the most lucrative? Examine your commission, expenses and time spent to secure and close each deal. If you have more than one niche that appears, which did you enjoy working with more? And most importantly – will this be a lucrative niche moving forward? Research future market trends and see what opportunities there are. Are the demographics of your city changing? How does this affect your niche strategy? A lot of this info can be found through your local real estate association and municipal government.

3.Define Your Niche

After analyzing your past clients and deciding what niche is for you, it’s time to define it. You should be able to succinctly describe your niche in one sentence. It should give direction to your marketing & prospecting, and let potential clients know exactly who you work with. For example, “I help young couples and families find their first home” or “I specialize downtown condos for an urban lifestyle.”

4.Get Prepared

If you’re going to adopt a niche strategy – you’ll need to be an expert. Brush up your skills by registering for a course, reading up on emerging trends and practicing your scripts. Honing in on a geographic area? Study up on past sales and visit open houses in the area to see what’s selling, what key features the area boasts, and how properties are marketed. Looking to work with retirees downsizing? What about becoming a NAR Senior Real Estate Specialist®?

5.Execute

How will you capture your niche? Even with all the planning & studying, execution is where you’ll sink or swim. Focus your efforts on your niche: target your website to these home buyers or sellers, network with service providers and local businesses that also work with this demographic; talk to your sphere of influence about the type of clients you work with and properties you sell so they know what referrals to send your way; and regularly re-evaluate your efforts to see what’s successful and where improvements can be made.

What’s My Specialty? The Benefits of Niche Marketing for Real Estate Professionals

niche marketing

A lot of times when marketing, new Real Estate agents try to reach as many people as possible. They chase every opportunity and desperately work to turn potentials into clients.

But being everything to everyone is a tall order. It’s extremely expensive to market to multiple segments – not to mention difficult to be knowledgeable about all of their needs.

Instead, wise agents focus efforts on a particular niche – a subset of the market that has specific needs and represents a profitable demographic. While large agencies can cover many specialities, individual agents focus on specific niches – whether its condos, a specific neighborhood or revenue properties. Even if you haven’t intentionally carved out your market niche, you probably see similarities in the types of properties you sell and clients you work with.

Susan Freidmann, author of Riches in Niches: How to Make it BIG in a Small Market supports becoming well-known as an expert in a niche because of 4 main reasons:

  • There’s less competition in niche markets
  • Efficiencies are created in research & marketing
  • You can demand premium prices because you’re seen as an expert
  • You benefit from increased visibility in your marketplace

And better yet, focusing on a niche market drives referrals. When you become known as the go-to-guy or -gal for selling historic homes or working with first time buyers, business connections know exactly the type of clients to refer to you. Better yet, because these clients are looking for what you specialize in, they’re easier to close.

Referrals from past clients also become simple. Remember the age-old saying Birds of a Feather Flock Together? Well, chances are that your past clients’ social networks are full of similar people that fit your niche – whether it’s newly married couples looking for their first home, or retirees wanting to downsize.

So, whether you choose to stick with a strongly defined niche for your entire career or have a more fluid approach where your niche changes with market trends, creating your niche is powerful for growing your business and increasing referrals.

And let’s face it, you’ll also have a killer answer when potentials ask what you specialize in.